[nib]

In following question ,

I thought as C answer , because first tax prepare should advise client of mistake or omission .In case client refuse to rectify error , in that case tax preparer can think of withdrawal. Then why answer is D .

Vee Corp. retained Water, CPA, to prepare its 20X4 income tax return. During the engagement, Water discovered that Vee had failed to file its 20X0 income tax return. What is Water’s professional responsibility regarding Vee’s unfiled 20X0 income tax return?

A. Prepare Vee’s 20X0 income tax return and submit it to the IRS.

B. Advise Vee that the 20X0 income tax return has not been filed and recommend that Vee ignore filing its 20X0 return since the statute of limitations has passed.

Incorrect C. Advise the IRS that Vee’s 20X0 income tax return has not been filed.

Correct D. Consider withdrawing from preparation of Vee’s 20X4 income tax return until the error is corrected.

[ohiostategirlcpa]

Yes, advise the client, but never the IRS.
You can never divulge confidential client information to the IRS (or anyone else) unless they have a court order.

F91 A95 R90 B94
CMA since 2015
(Gleim books/PDFs, MCQs, SIMS)

[nib]

@ ohiostategirlcpa

Thanks .

I just missed the word” IRS” in rush .

i misread it as advise client .

[Tncincy]

I had a situation where my brother has not filed in 4 or 5 years. he recently decided to send me is tax information from out of state, I recommended that he go to whom ever has been doing his taxes and his reply was he has not filed, so I then told him I could not be responsible for previous returns and needs he get those straightened out and filed. He say he don't understand what the big deal is but I am sure he understands. I don't know his situation, but I know it might not be a good one to not file for 4 to 5 years. So yeah I would withdraw even though this originally is a quiz question.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Anonymous]

WOW- so interesting how these examiners trick us. SAME EXACT thing happened to me when i first picked C with assurance! i missed the word “IRS.” wow im amazed, they got two of us. shows you how good they are at designing these questions with distractor answer choices

had it said “Advise the CLIENT that Vee's 20X0 income tax return has not been filed” it would have been a correct answer.

[Author]

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